Solid Growth: Wood Coatings to Boom

The report, released by MarketsandMarkets.com, says that improvements in the global economy and the rise of both commercial and noncommercial construction is expected to produce a growth rate of 6.3 percent over the next five years.

Wood coatings, most often used in the construction and furniture industries, include stains and varnishes, shellac coatings, wood preservatives, water repellents and others.

Stains and varnishes is projected to be the fastest-growing market segment, according to the report.

Regionally, Asia-Pacific is experiencing the most growth, followed by Europe and North America, the report says.

To capitalize on the demand for wood coatings, key market players have strengthened their footholds through mergers and acquisitions over the past five years.

This has allowed German-based BASF SE, The Netherlands-based Akzo Novel N.V., and two U.S. companies—The Dow Chemical Co. and Sherwin-Williams—to keep up in the regions where wood coatings are needed the most, the report states.

Those investment strategies also have allowed the dominant market leaders to gain expertise in the industry and make their practices more efficient, the report says.

Market Drivers

In addition to the rise of renovations and remodeling, the wood coatings market is being fueled by the end users’ demand for more eco-friendly products.

Consumers worldwide are seeking low-VOC wood coatings, which the report lists as a major growth opportunity for the companies involved in the industry.

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The stains and varnishes category is expected to be the fasted growng coating type in the wood coatings market, while the Asia-Pacific region is expected to be the fastest growing regional market in the world.

Emerging countries where the need for wood coatings is expected to increase and rapidly changing technologies are other factors driving the market growth, the report says.

Companies will need to continue to invest in research and development to come up with new solutions in the constantly changing marketplace, the report says.